ASUR Business Plan appraisal

Avia supported the Mexican Ministry for Communications and Transport and its Airport Regulator (DGAC)  in providing an independent assessment of the five year business plans of the ASUR group of airports, in support of the regulatory review and tariff determination process. The project included a detailed appraisal of ASUR’s passenger, capex and opex projections across its portfolio of nine airports including Cancun, Mexico’s 2nd largest airport.

This exciting project involved the review and challenge of projections for all 9 Aeropuertos Del Sureste (ASUR) Mexican airports including the development of:

• Alternative traffic forecasts.
• Assessment of the airport capital investment plans including a site assessment of 4 of the 9 airports. 
• Review and challenge of the operational expenditure projections including the recommendation of alternative opex forecasting methodologies. 
• The proposal of a Weighted Average Cost of Capital (WACC) range to be applied to the price cap formula.
• Recommended changes to the regulatory review process to enable a more efficient and inclusive system.

We presented our conclusions to the Mexican regulator Dirección General de Aeronáutica Civil (DGAC) and Secretary of State for Transport, which were subsequently utilised during ongoing negotiations with ASUR to set the price cap for the next 5 year regulatory period.